StoneCo (NASDAQ:STNE) Trading Down 5% – Here’s Why

StoneCo Ltd. (NASDAQ:STNE) was down 5% on Monday . The stock traded as low as $10.47 and last traded at $10.61. Approximately 1,283,128 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 5,443,164 shares. The stock had previously closed at $11.17.

Wall Street Analyst Weigh In

A number of analysts have commented on STNE shares. Citigroup lowered shares of StoneCo from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $18.00 to $11.00 in a report on Friday, May 15th. BTIG Research reduced their price target on StoneCo from $22.00 to $15.00 and set a “buy” rating on the stock in a research report on Friday, May 15th. UBS Group decreased their price objective on StoneCo from $19.50 to $19.00 and set a “buy” rating for the company in a research note on Wednesday, March 11th. Weiss Ratings downgraded StoneCo from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, June 18th. Finally, JPMorgan Chase & Co. cut their target price on StoneCo from $20.00 to $16.50 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $17.58.

StoneCo Trading Down 0.5%

The company has a fifty day simple moving average of $10.87 and a two-hundred day simple moving average of $13.61. The stock has a market capitalization of $2.65 billion, a P/E ratio of 4.25, a price-to-earnings-growth ratio of 0.20 and a beta of 1.73. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.57.

StoneCo (NASDAQ:STNE) last released its quarterly earnings results on Wednesday, May 13th. The company reported $0.42 earnings per share for the quarter, meeting the consensus estimate of $0.42. StoneCo had a net margin of 23.82% and a return on equity of 21.05%. The company had revenue of $141.16 million during the quarter, compared to analysts’ expectations of $675.11 million. On average, sell-side analysts expect that StoneCo Ltd. will post 2.31 earnings per share for the current year.

StoneCo Announces Dividend

The company also recently announced a special dividend, which was paid on Monday, May 4th. Shareholders of record on Friday, April 24th were issued a dividend of $2.53 per share. The ex-dividend date was Friday, April 24th.

Insider Activity

In other news, Director Silvio Jose Morais sold 9,000 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.29, for a total value of $101,610.00. Following the sale, the director directly owned 21,000 shares in the company, valued at $237,090. The trade was a 30.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website.

Hedge Funds Weigh In On StoneCo

Hedge funds have recently made changes to their positions in the business. Versant Capital Management Inc lifted its position in shares of StoneCo by 54.4% in the second quarter. Versant Capital Management Inc now owns 3,032 shares of the company’s stock worth $33,000 after purchasing an additional 1,068 shares in the last quarter. Lombard Odier Asset Management Europe Ltd bought a new position in StoneCo in the first quarter valued at $1,836,000. Bank of America Corp DE increased its stake in StoneCo by 151.7% in the 1st quarter. Bank of America Corp DE now owns 6,032,572 shares of the company’s stock valued at $85,180,000 after buying an additional 3,636,276 shares during the last quarter. Amundi lifted its position in StoneCo by 34.4% during the 1st quarter. Amundi now owns 430,024 shares of the company’s stock worth $6,072,000 after buying an additional 110,101 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of StoneCo by 77.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,705 shares of the company’s stock worth $38,000 after buying an additional 1,180 shares during the last quarter. 73.19% of the stock is owned by institutional investors.

About StoneCo

StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil’s retail, restaurant and services sectors.